(AOF) – During its first Capital Markets Day in Paris, Eramet (+0.53% to 67.35 euros) unveiled its “A New Era” strategy, as well as an “ambitious” new CSR 2024 roadmap -2026: “Act for positive mining”. This strategy is structured around two axes: growing in metals for global economic development and sustainably developing critical metals for the energy transition. Its solid financial structure will allow the deployment of an investment plan of approximately 1.9 billion euros over the period 2024-2026 to strengthen cash-generating activities.
Eramet plans to “maintain adjusted leverage below 1 on average over the duration of the cycle, with a temporary exceeding of this level during the coming investment period”.
This solid financial structure will also “prepare for future growth mainly in the energy transition”.
The mining and metals company is targeting 8.5 million tonnes of manganese ore produced and transported per year by 2026 (targeting approximately 40% market share in high-grade ore), with capacity increased to over 10 million tonnes per year in the longer term.
At the same time, Eramet plans to market 60 million so-called “wet” tonnes of nickel ore at Weda Bay in Indonesia and the production of 24 kilotons of lithium carbonate (kt-LCE) (battery quality lithium) in Argentina ( Centenario, Phase 1). Eramet is developing, in partnership with the Chinese group Tsingshan, a lithium extraction project from Centenario brines. The group targets around 30 additional kt-LCE in the medium term (Phase 2, first tranche).
The plan presented by Eramet aims to “support its cash-generating activities and fuel its future growth”, with around 900 million euros of investments in 2024, around 600 million euros in 2025 and around 400 million euros in 2026.
The group specifies that growth investments linked to the first axis of the strategic roadmap represent between 450 and 550 million euros. Growth investments linked to the second axis of the strategic roadmap are approximately $50 million for Phase 1 and approximately $400 million for Phase 2 (1st tranche) of the Lithium project, excluding Tsingshan’s share in the project.
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